Microsoft's proposal last year to merge with SAP reveals a somewhat desperate Microsoft, anxious to gain a huge footprint in enterprise applications as other sources of revenue are under siege. Given Microsoft's past dealings with the Department of Justice, I wonder how easily the company could get past federal regulators with such as merger. Subsequent to the SAP talks, Microsoft reportedly gave a sworn statement to the DOJ that it wouldn't compete in the upper tier of the enterprise software market for two years. Is Microsoft flip-flopping--or just confused about its own stategy? On one hand, the company wanted to buy its way into the enterprise apps market with SAP; then it says that it won't enter the market for a while--which tends to give succor to the DOJ's antitrust gambit of opposing Oracle's hostile bid for PeopleSoft.

Transparent windows that fade when they aren’t active is a feature of Apple’s operating system, but are also slated to show up in the next version of Microsoft’s Windows (the Longhorn Aero interface) and has been seen in Sun’s “Looking Glass” user interface for Solaris. Now Apple wants to patent this idea. As part of its application, Apple described a feature that would allow the user to work through an unused window. “Upon reaching a certain level of visual translucency, user input in the region of the window is interpreted as an operation on the underlying objects rather than the contents of the overlaying window.”

Apple was recently awarded a patent for the interface used in the iTunes music software.

Bottom line: Apple doesn’t want to end up like Xerox PARC, whose inventions formed the basis for original Lisa and Macintosh user experience but never made a dime from licensing the concepts. You might recall that Apple sued Microsoft over the similarity of Windows to the Mac user interface, but did not prevail in the courts. Two questions come to mind: Will Apple’s patents hold up, and would the company license them.

After a recent trip to Lebanon, CNET's Esther Dyson stresses the importance of being sensitive to local cultures and customs when expanding globally. She told me which companies she thinks are doing a good job and explains what international governments should do to secure U.S. investment.

The evolution to enterprise service architecture strategy is a huge bet for SAP, especially if Web services turn out to be more problematic to evolve and take root in enterprises. But, SAP CEO Kagermann is convinced that he is making the right moves:  “I am completely convinced it’s the right architecture for next ten or more years. We have the architecture and application knowledge to do the granularity of enterprise services in the right way. Its not just technology--we deliver an architecture that brings flexibility but still requires that customers select one vendor of choice as a sole control. But within the [framework], you can combine with other components.”

 

The critical point for SAP and its competitors, and more importantly their customers, is the notion of a vendor of choice and sole control. Despite the promise of more interoperable components and composite software composed of elements from a multitude of vendors, customers will follow the path of least resistance and complexity. That means fewer vendors and a few major providers who impact how other products and services are used.

 

We may be moving from client/server to enterprise services, but some things don’t change. The SAPs of the world will increasingly dominate the software business, and the important innovations that sprout from smaller companies could have a more difficult time getting sunlight.

At SAP's annual customer event--SAPPHIRE--CEO Henning Kagermann touted the development partnership with Microsoft and an agreement with several hardware vendors to provide virtualization services for Netweaver. Fundamentally, SAP is leading the push toward a more complete service-oriented architecture with Netweaver and SAP's suite of applications, such as mySAP ERP.. "It's [mySAP ERP] a transaction system built around people," Kagermann said. "If we want to go for growth, the best we can do is make our people more knowledgeable and take the most out of your knowledgeable people. The paradigm of the future is a system that pushes relevant information to you--not management by transcation, but by exception. In Kagermann's vision the user gets the alerts, KPIs,  filtered information with embedded analysis and what he called 'guided self services' to help make decisions better and take appropriate action.  There isn't much new or original in Kagermann's vision, but SAP is actually doing more than competitors to make it happen across platforms (Java and .Net) and industries.

We are covering the N+I networking conference in Las Vegas this week. Check out our ongoing coveraging, including keynotes for MCI's Michael Capellas and Cisco's John Chambers.

David Berlind: One of the challenges facing attendees at a big trade show like N+I is finding the handful of nascent, disruptive technologies that are poised for explosive growth once IT departments get hip to their advantages. One such technology at this year's N+I is wireless mesh technology. In these days of Wi-Fi, the phrase "wireless" generally conjures up images of untethered client connectivity. Wireless mesh is nothing of the sort--it's primarily a new enabler for Ethernet deployments in scenarios where pulling wire doesn't make sense.

John Carroll writes cogently about the proprietary versus open source code debate....especially as it relates to which model is best from a business value point of view.

In an interview before Google's IPO filing, tech guru Craig Silverstein discussed the backlash against Gmail among privacy advocates, the company's cultural changes and its shifting reliance on PageRank. It turns out that this man behind the curtain doesn't offer any substantive revelations.

David Berlind: Mercury Interactive's brand of business technology optimization (BTO) is mission critical. 

IBM introduced a new Workplace client technology that the company said combines the richness of the client-server model with the low TCO of the browser-based model. The company will charge customers $2 per user per month for the software, but will make money on the required server software, such as IBM’s WebSphere. It's the WebSphere everywhere strategy, similar to Windows everywhere but with less proprietary components. The hosted applications business is gaining traction, and IBM’s new Workplace provides another alternative (along with Sun’s StarOffice, OpenOffice.org and Linux desktops) to Microsoft Office.  Dan Leach, group product manager for MS Office, responded to IBM’s move, telling me that the two companies simply have different approaches: “Do you need a rich desktop client or limited functionality in a portal-based solution. Our vision is putting the power of PC at the customer’s fingertips, not placing the power of software at arms length.” That being said, Microsoft currently offers Outlook e-mail as a web applications, and if IBM gains any traction (which is doubtful in the near term), the company will have to consider delivering apps as networked services.

Despite all the mea cuplas regarding the unacceptable abuse of detainees in Iraq, Defense Secretary Rumseld and his comrades in the chain of military command still look more like Keystone Cops than members of a well-honed organization that President Bush and VP Cheney claim to run. It reminds of the recent corporate governance scandals that caused heads to roll and reforms in corporate governance. Restoring the reputation of a government, company or individual can take years and some never recover. Computer Associates has been undergoing trial by fire, although it's deposed chairman and CEO Sanjay Kumar still has a prominent role in the company. And, Rumsfeld isn't going anywhere unless the tide turns against Bush in his quest for a second term and something or someone has to be thrown in front of the bus. So, the question is how can the U.S restore it reputation beyond the endless panels, inquiries, and scapegoats. A fundamental cultural change is required, and that will be difficult with or without a change in the administration. The 20-year-olds involved in the torture probably learned the techniques from watching TV and movies, which provide a steady diet of murder, torture and mayhem. 

SAP launched 50 individual "quick fix" packages of software and services. The packages cover task such as launched a set of "quick fix" integrating fax and e-mail applications or data archiving tools with SAP's enterprise. The company will promise a 30-day turnaround for most projects, and no payments until the package is up and running. That sounds like a good approach, although priced at 'less than $30,000' sounds like an expensive quick fix. How difficult is it to  plug e-mail services into SAP's platform or those from other companies.  It's the old problem of companies paying a huge cost to integrate applications and services that should naturually work together. Maybe Web services will help with that problem, but a what cost?

Intel is cancelling a version of the Pentium 4 due out later this year and a similar Xeon chip for servers that had been slated for 2005. Instead, Intel is prepping dual-core chips for desktops in 2005 and notebooks in 2005 or 2006. Apparently, heat dissapation problems in the single core processors running at higher clock speeds drove the decision.

Coop gives Google a hard time in parsing its SEC filing. He's right that the the company's idealism sounds phony (he calls it 'Mary Poppins at 30,000 feet') when you put it in the context of the world of high finance, but at least they are trying to preserve their innocence and set a better example for corporate governance. It will be interesting to watch how well they adhere to their principles under the pressures of a public market and intense scrutiny.

Rather than try to reverse the outsourcing wave, the best way for America to fend off foreign competition is to invent technologies, according to a news.com special report.

 Peter Cochrane, former CTO and Head of Research at British Telecom, writes: " It looks as though the clock could be ticking for corporate IT and security departments in the same way typing pools bit the dust over 20 years ago. The tyranny of the typing pool ended with the computer terminal and the PC. The tyranny of IT departments looks to be coming to an end through a combination of smarter users, better software and outsourcing. No longer will your company's IT staff dictate which laptop and PDA you can purchase, which applications you can use, and which networks you can access. You, the end user, will get to call the shots, to choose the tools that best allow you to do your job most efficiently." 

His vision sounds a bit difficult to sell up the corporate ladder at this juncture. Getting an IT department or service bureau to buy and support laptops or PDAs from multiple vendors of your choosing doesn't happen today. Perhaps when all this gear works together seamlessly, but I am skeptical that day will come anytime soon.

David Berlind:  With Microsoft poised to transform Windows XP's built-in personal firewall into a more serious security technology, now's a good time for enterprises to think more strategically before buying any more third-party personal firewall technology. And remaining independent personal firewall vendors like ZoneLabs ought to consider their long-term survival strategies. It won't be the first time that Microsoft's decision to can some added functionality into Windows has sounded the death knell for a cottage industry. But where's the outbound filtering?

Though the damage wrought by Sasser failed to reach the levels of MSBlast and other major infections, security experts are warning that there could still be more trouble to come from the worm.

The Nielsen Norman Group published its Web Usability 2004 survey results today and the most glaring problem is Web usage is search. A search engine is the first action taken in 88 percent of the Web sessions, with users visiting an average of 3.2 sites per session (other than search engines). About 50 percent of those surveyed (in live usability tests) clicked on a search result, but less than 5 percent of users employ quotes or other query syntax to refine searches. In addition, the survey showed than unless you are one of the first links at the top of a search result page (the top link got 51 percent and the second, 16 percent), you will be mostly ignored. Not a bit surprise.

In terms of search success, all users (both the casual and more experienced users survey) were happy only 42 percent of the time. More experienced users are more proficient at search activities, but even they found success only 50 percent of the time. And, the worst search experiences came from internal Web site searches, not the mega search engines. Usability guru Jakob Nielsen characterized internal search implementations as "beneath contempt."

Search engines have to get smarter and more contextual. Users aren't going to mess with advanced search techniques to overcome the current limitations. At a minimum most Web sites need to overhaul their search, invest in taxonomies and metadata and employ a decent search engine that has a team constantly tuning and improving the engine. Perhaps Google will be willing to open its search APIs and other technology to Web sites and enterprises that need a search infrastructure for structured and unstructured data.

News.com has an in-depth special report on offshoring. 

U.S. needs reforms, not rhetoric

Government officials, business leaders and academics agree that the future of America's technology complex depends on education, professional training and research investment.

Companies guarding 'secret sauce'

Although many U.S. technology businesses are contracting or considering some form of foreign outsourcing, they are adamant about keeping intellectual property at home--for now.

How India is handling the backlash

In stark contrast to the heated reaction among many U.S. workers, the country that is most associated with offshoring is both subdued and puzzled by the opposition that has arisen.

Big Problem

  PC Mag columnist John Dvorak has a good piece on outsourcing realities...

The SCO Group's legal action against Linux is unfounded, the National Retail Federation told members Wednesday, a new blow to the company's litigation strategy.

 

It appears that Apple is downplaying vulnerabilities that security experts believe should be labeled as critical flaw that must be patched ASAP. A buffer overflow threat in the Apple file-sharing system could allow remote attacker to take over a system, but the company calls the fix a way "to improve the handling of long passwords." Shouldn't Apple be held to the same standard as Microsoft in disclosing flaws???

Improving the user experience has been one of computing's most vexing problems, and digital convergence is raising the stakes big time. Consumers will not tolerate the control-alt-delete and configuration nightmares. Microsoft wants to carry its dominance from the traditional PC world into this new era of converged digital, IP-based infrastructure. At WinHEC, Microsoft vp Jim Allchin noted that the company's success depends on mastering the fundamentals of simplicity and reliability. He's right: Without getting the fundamentals under control--including security--the next generation Microsoft platform could fall on its face. Microsoft has the money to outlast competitors, but it won't win the hearts and minds of customers. Check out my notes from WinHEC.

At WinHEC, Gates said a fond goodbye to the floppy disk. "For the first time, I can say that the floppy disk is dead." The future is USB flash, which, according to industry reports, is expected to ship in volume of between 67 million and 120 million drives in 2005. Microsoft is also promoting the drives as a method for simple configuration of wireless network security. The only problem is that they are too easy to lose.

Google filed to go public today, seeking to raise $2.7 billion in an unusual auction-style offering that will give the founders rare control over the company.

Download the filing

Co-founders release Google 'owner's manual' Lifting the lid on Google

Want in on Google's IPO?

Rupert Goodwins has an interesting perspective on the virtualization craze: "If you've got one server running on a computer where every resource is maxed out -- processor gasping for breath, disk heads twitching like a Los Angeles seismograph, memory chocka and networks screaming -- then virtualisation will only make things worse."

  

XML pioneer Robert Glushko decries how powerful interests have distorted the standards process by derailing the work of well-established standards organizations. He also contends that the standards development in governmental organizations, such as the United Nations, is a very politicized process. Glushko offer his views on the state of technology standards following revelations that Microsoft paid travel expenses of U.N. technical committee members -- a move that critics claim gave the software giant unfair influence in pressing the case for Web services over ebXML standards within the U.N.
 

The basics: more than 50 percent of all e-mail is spam and it costs U.S. companies at least $1 billion per year in security and human resources expenditures, as well as lost productivity. Increasingly, virus-infected machines are used to distribute spam and perpetuate additional fraud, such as phishing. Several antispam technology approaches have been proposed in recent months. I talk with Peter Christy of NetsEdge Research about various approachs from Yahoo, Microsoft and others for fighting the plague. Video